UBS has announced a tradable benchmark for global investments in the weather derivatives market. The UBS Global Warming Index (UBS-GWI) is constructed using liquid, actively traded Heating Degree Day (HDD) and Cooling Degree Day (CDD) weather futures contracts. These futures contracts settle on the difference between the average daily temperature and a given base temperature.
Initially, the index will comprise weather futures contracts of 15 US cities traded on the Chicago Mercantile Exchange
The week on Risk.net, December 2–8, 2017Receive this by email